CAF-8 · Chapter 10 · Question 6 of 10
Which procedure best tests the 'Completeness' of a company's recorded payroll expense?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Performing a proof-in-total (analytical procedure) by multiplying the average number of employees by the average salary and comparing it to the total recorded expense.
Explanation
A proof-in-total is a powerful substantive analytical procedure used to ensure the total recorded expense is reasonable and complete based on known operational data.
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